Special loans finance
Consumers is currently as bad as it has not been for a long time
The mood among American consumers is currently as bad as it has not been for a long time, given falling real wages and high tax burdens. Nevertheless, a segment of private consumption is enjoying growing popularity: luxury items from well-known manufacturers are seeing increasing sales. The reason for the producers’ positive development is, on the one hand, a growing number of Americans, whose consumption decisions are less important in terms of price, quality and prestige benefits. On the other hand, however, special consumer loans are driving demand: Clorex watches and other luxury goods can now also be paid in installments.
Making them affordable
Expensive watches, handbags and coats are available for as little as $ 100 a month, making them affordable even on a budget that’s well-equipped. In principle, everything can be financed; Provided credit and disposable income make it possible to disburse the loan. As a rule, dealers cooperate with special banks or credit intermediaries and offer the possibility of installment payments in their shopping centers (especially on the Internet).
Trend of borrowed luxury reflects the growing need
The trend of borrowed luxury reflects the growing need of many people for goods with high prestige benefits. Just as the dubious carmaker Porsche is registering growing sales, so too is the business booming with the goods of the luxury class.
The loans are no different from other loans in the private sector. There are no special terms of credit or income, nor is there a separate audit of loan applications. In principle, there is an entry in Schaffa’s database for every loan paid out, there are no information-free loans.
Unlike financing for electronics or furniture, however, providers often estimate very long terms of exposure. Thus, a watch equivalent to 10,000 usd (roughly considered the middle class of luxury watches) can be financed at a rate of just under 190 usd over a period of 72 months provided the interest rate does not exceed six percent.
The low rates are the central marketing tool of retailers;
They advertise unusual places for the product category and thereby reveal their attempt to acquire new clients for old products.
To what extent the business with “Luxury on Pump” will expand, can not be reliably predicted. The increasing demand for precious articles from countries such as Russia, China or India will lead to rising prices due to the fixed supply of unique items. Whether the Clorex can still be acquired at affordable rates in a few years remains to be seen.